Worldwide Mutual Fund Assets And Flows
Second Quarter 2006

Washington, DC, November 6, 2006 - Mutual fund assets worldwide increased 1.6 percent to $19.41 trillion at the end of the second quarter of 2006. Net new cash flow to all funds worldwide fell to $206 billion in the second quarter, from $437 billion in the first quarter of 2006. Compared to the first quarter, inflows to long-term funds fell by two-thirds to $135 billion, with net flows down for all asset categories (equity, bond, mixed/balanced, and other). In particular, flows to American and European equity funds dropped substantially. In contrast, second-quarter money market fund inflows more than doubled to $71 billion, as United States' money market fund flows strengthened substantially. On a year-to-date basis, net cash flow to all funds is $262 billion higher than in the first half of 2005.

The Investment Company Institute compiles worldwide statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The collection for the second quarter of 2006 contains statistics from 41 countries.

Worldwide Mutual Fund Assets
(trillions of U.S. dollars, end of quarter)

Most reporting countries had positive net cash flow in the second quarter of 2006 despite negative stock market performance. However, growth in assets reported in U.S. dollars was boosted by depreciation of the dollar. For example, mutual fund assets in Europe on a U.S.-dollar-denominated basis increased 3.6 percent, compared with a 1.4 percent decline on a Euro-denominated basis.

On a U.S.-dollar-denominated basis, equity mutual fund assets declined slightly in the second quarter, but asset levels increased in all other investment categories. Assets of equity funds registered a decline of 0.5 percent with $9.2 trillion in assets at the end of the second quarter of 2006. Bond funds were up 1.3 percent and money market funds grew 4.2 percent in the quarter. Assets of balanced/mixed funds continued to grow at an above average pace, increasing 5.0 percent to $1.8 trillion at the end of the second quarter.

Worldwide Assets Of Equity, Bond, Money Market, And Balanced/Mixed Funds
(billions of U.S. dollars, end of quarter)

Net cash flow to mutual funds worldwide was $206 billion in the second quarter of 2006, with both long-term funds and money market funds experiencing aggregate net inflows. Equity fund flows worldwide slowed to $73 billion in the second quarter, compared with $246 billion in the first quarter. The Asia/Pacific and African regions accounted for $41 billion of inflows, about in line with the first quarter pace. On the other hand, after topping $200 billion in the first quarter, inflows in the Americas and Europe fell to $32 billion. Although below the brisk pace in the first quarter, balanced fund flows remained strong, hitting $48 billion, with the bulk of the inflows, $35 billion, attributable to Europe. Net flows to bond funds registered a $5 billion outflow in the second quarter of 2006 after experiencing a $65 billion inflow in the first quarter. Net inflows to bond funds in the Americas were $13 billion in the second quarter, but were offset by outflows in the European, African, and Asian and Pacific regions. The pace of flows into money market funds accelerated in the second quarter to $71 billion, up from $28 billion in the first quarter. Money market fund flows in the United States strengthened considerably to $58 billion in the second quarter, compared to $5 billion in the first quarter. Flows outside the U.S. weakened, falling from $23 billion in the first quarter to $13 billion in the second quarter.

Net Sales Of Mutual Funds Worldwide
(billions of U.S. dollars)

		2004		2005				2006
		Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
All Funds		22	166	215	166	305	284	437	206
	Equity	40	100	103	65	87	160	246	73
	Bond	19	43	99	49	89	-14	65	-5
	Money Market	-57	-10	-21	*	59	81	28	71
	Balanced/Mixed	13	24	11	26	37	34	73	48
	Other	5	8	22	25	32	22	25	19

*Less than $0.5 billion.
Note: Thirty countries reported in 2004:Q3; 31 countries reported in 2004:Q4; 32 countries reported in 2005:Q1, 2005:Q2, 2005:Q3, and 2005:Q4; and 33 countries reported in 2006:Q1 and 2006:Q2. Assets of reporting countries represented 92 percent of assets of all countries at the end of 2006:Q2. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to the total because of rounding.

Equity fund assets represented the bulk of all worldwide mutual fund assets: At the end of the second quarter of 2006, 47 percent of worldwide mutual fund assets were equity funds. The asset share of bond funds was 19 percent and money market funds were 18 percent of the total. Balanced/mixed fund assets represented 9 percent of the total.

Worldwide Mutual Fund Assets By Type Of Fund, 2006:Q2
(percent)

Note: Other/unclassified includes the total net assets of Ireland.

By region, 53 percent of worldwide assets were in the Americas in the second quarter of 2006, 35 percent were in Europe, and 12 percent in Africa and Asia/Pacific.

Worldwide Mutual Fund Assets by Region, 2006:Q2
(percent)

The number of mutual funds worldwide stood at 59,385 at the end of the second quarter of 2006. By type of fund, 41 percent were equity funds, 23 percent were bond funds, 20 percent were balanced/mixed funds, and 6 percent were money market funds.

Worldwide Mutual Funds by Type of Fund, 2006:Q2
(percent)

Note: Other/unclassified includes total funds in Ireland.

Total Net Assets, 2001-2006:Q2
(billions of U.S. dollars, end of period)

		2001	2002	2003	2004	2005			2006
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries1		11,655	11,324	14,048	16,165	16,368	17,285	17,771	19,110	19,414
	Equity	5,134	4,204	5,923	7,219	7,384	7,953	8,333	9,228	9,178
	Bond	2,212	2,534	3,047	3,313	3,397	3,517	3,450	3,591	3,636
	Money Market	2,986	3,190	3,206	3,323	3,202	3,279	3,364	3,412	3,556
	Balanced/Mixed	942	918	1,198	1,445	1,455	1,535	1,566	1,717	1,802
	Other	190	229	311	398	436	481	512	567	602
Countries Reporting in Every Period2		11,199	10,767	13,300	15,246	15,428	16,284	16,731	17,965	18,217
	Equity	5,007	4,084	5,766	7,031	7,201	7,753	8,123	8,986	8,939
	Bond	2,152	2,462	2,953	3,217	3,299	3,411	3,339	3,470	3,532
	Money Market	2,970	3,159	3,157	3,254	3,129	3,202	3,289	3,333	3,463
	Balanced/Mixed	888	860	1,128	1,364	1,377	1,452	1,485	1,626	1,698
	Other	182	202	296	380	422	466	495	549	584

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
¹ Components may not sum to total because of rounding or unclassified funds.
² Number of countries is 26. Components may not sum to total because of rounding.s

Net Sales,¹ 2002-2006:Q2
(billions of U.S. dollars)

		2002	2003	2004	2005	2005			2006
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries2		278	317	457	971	166	305	284	437	206
	Equity	66	283	357	416	65	87	160	246	73
	Bond	130	177	109	224	49	89	-14	65	-5
	Money Market	53	-212	-120	120	0	59	81	28	71
	Balanced/Mixed	6	56	82	108	26	37	34	73	48
	Other	23	14	29	102	25	32	22	25	19
Countries Reporting in Every Period3		240	165	307	672	127	205	212	283	130
	Equity	55	250	298	317	59	61	121	177	62
	Bond	121	86	62	91	35	56	-33	23	-1
	Money Market	49	-218	-131	128	5	53	91	26	47
	Balanced/Mixed	10	40	69	112	22	30	27	52	17
	Other	5	6	8	23	6	6	5	7	5

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
¹ Net sales are new sales plus reinvested dividends less redemptions plus net exchanges.
² Components may not sum to total because of rounding or unclassified funds.
³ Number of countries is 18. Components may not sum to total because of rounding.

Number of Funds, 2001-2006:Q2
(end of period)

		2001	2002	2003	2004	2005			2006
						Q2	Q3	Q4	Q1	Q2
All Reporting Countries1		52,849	54,110	54,569	54,982	55,919	56,095	56,867	58,357	59,385
	Equity	22,348	22,974	22,688	22,362	23,043	23,050	23,263	23,949	24,408
	Bond	12,183	11,619	11,886	13,309	13,213	13,225	13,231	13,314	13,395
	Money Market	4,277	4,394	4,974	3,623	3,598	3,569	3,536	3,568	3,595
	Balanced/Mixed	11,155	11,228	11,465	11,603	11,291	11,181	11,393	11,786	12,113
	Other	1,195	1,310	1,578	1,997	2,659	3,017	3,317	3,575	3,711
Countries Reporting in Every Period2		41,620	42,393	41,689	42,354	42,529	42,377	42,426	43,404	44,087
	Equity	20,630	20,808	20,018	19,918	20,052	19,952	20,043	20,522	20,856
	Bond	9,830	9,946	9,847	9,961	10,026	10,076	10,004	10,114	10,189
	Money Market	2,727	2,674	2,652	2,899	2,867	2,831	2,799	2,824	2,842
	Balanced/Mixed	7,500	7,723	7,857	8,095	7,966	7,850	7,857	8,046	8,232
	Other	933	1,242	1,315	1,481	1,618	1,668	1,723	1,898	1,968

Source: National mutual fund associations; European Fund and Asset Management Association (EFAMA, formerly FEFSI) provides data for all European countries except Romania and Russia.
¹ Components may not sum to total because of unclassified funds.
² Number of countries is 24.